Employer competition drives wages toward labour’s exchange value while monopsony allows rent extraction.

Evidence

Note: The greater the competition between several employers, the closer the wage reflects the exchange value of the worker’s commodity labour. Thus, in labour markets dominated by one or few employers, the wage falls short of the exchange value of the worker’s commodity labour – which translates into a type of monopsony rent (see 2.3.3 below) retained by the employer. — Yanis Varoufakis, Technofeudalism, 798

Categorization

• DEFINE: Defines monopsony rent in the labour market: wages fall below exchange value when few employers compete.
• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 798
• XREF: connects to: Market competition erodes profits but increases rents. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 468; Competition drives price toward exchange value determined by embedded labour — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 787; Confinement creates a labor monopoly that lets the contractor set wages — Jeremy Bentham, The Panopticon Writings, 211 (+7 more)

Broader Connections

• Labor is the commodity whose surplus value is expropriated and realized through market exchange #expands (0.82)
• Confinement creates a labor monopoly that lets the contractor set wages #exemplifies (0.78) — Jeremy Bentham, The Panopticon Writings, 211
• Unemployment functions as the pivot keeping labor markets within exploitative limits of capital dominance #complicates (0.75) — Clara E. Mattei, Escape from Capitalism, 256
• Profit does not reward capital but results from labour’s dual nature #complicates (0.74) — Yanis Varoufakis, Technofeudalism, 75
• Unemployment structurally disciplines workers and lowers labor costs in capitalism #corroborates (0.74) — Clara E. Mattei, The Capital Order, 150
• Skilled labour organicity limits competitive wage discipline. #qualifies (0.72) — Antonio Gramsci, Selections from the Prison Notebooks, 1146
• Depoliticized labor markets discipline workers through the threat of unemployment and lower wages #corroborates (0.72) — Clara E. Mattei, The Capital Order, 796